Pre-Tax Income of
Diluted EPS of
Gross Loss Ratio of 20.1%
Management Commentary
“HCI Group had an excellent start to 2026, delivering record first quarter results for earned premiums, net income and earnings per share,” said
First Quarter 2026 Results
Gross premiums earned in the first quarter of 2026 were
Premiums ceded for reinsurance in the first quarter of 2026 were
Net investment income in the first quarter of 2026 was
Losses and loss adjustment expenses in the first quarter of 2026 were
Policy acquisition and other underwriting expenses in the first quarter of 2026 were
Share Repurchase
On
Conference Call
Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company's website at www.hcigroup.com.
Listen-only toll-free number: (888) 506-0062
Listen-only international number: (973) 528-0011
Entry Code: 930676
Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact
A replay of the call will be available by telephone after
Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 53888
About
Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. Further, future cash flow and earnings may limit HCI’s ability or willingness to engage in share buybacks. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations.
Company Contact:
Investor Relations
Tel (813) 355-5341
notis@hcigroup.com
Investor Relations Contact:
Tel (949) 574-3860
HCI@gateway-grp.com
- Tables to follow -
Selected Financial Metrics (Unaudited) (In thousands, except share and per share amounts) | ||||||||||||
| Three Months Ended | Year Ended | |||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Gross Written Premiums: | ||||||||||||
| Homeowners Choice | $ | 118,167 | $ | 117,133 | $ | 652,569 | ||||||
| 135,197 | 142,396 | 503,672 | ||||||||||
| Condo Owners Reciprocal Exchange | 3,034 | 7,731 | 31,001 | |||||||||
| Tailrow Reciprocal Exchange | 24,293 | 21,985 | 107,528 | |||||||||
| Total Gross Written Premiums | $ | 280,691 | $ | 289,245 | $ | 1,294,770 | ||||||
| Gross Premiums Earned: | ||||||||||||
| Homeowners Choice | $ | 164,703 | $ | 156,489 | $ | 637,741 | ||||||
| 125,046 | 124,447 | 502,756 | ||||||||||
| Condo Owners Reciprocal Exchange | 6,851 | 15,325 | 47,688 | |||||||||
| Tailrow Insurance Exchange | 29,606 | 4,122 | 47,960 | |||||||||
| Total Gross Premiums Earned | $ | 326,206 | $ | 300,383 | $ | 1,236,145 | ||||||
| Gross loss and loss adjustment expense ratio | 20.1 | % | 19.7 | % | 19.6 | % | ||||||
| Per Share Metrics | ||||||||||||
| Diluted earnings per share | $ | 5.45 | $ | 5.35 | $ | 22.72 | ||||||
| Dividends per share | $ | 0.40 | $ | 0.40 | $ | 1.60 | ||||||
| Book value per share at the end of period | $ | 84.41 | $ | 48.55 | $ | 80.13 | ||||||
| Shares outstanding at the end of period | 12,900,905 | 10,765,336 | 12,992,147 | |||||||||
Consolidated Balance Sheets (In thousands, except share amounts) | ||||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Fixed-maturity securities, available for sale, at fair value (amortized cost: | $ | 914,846 | $ | 597,329 | ||||
| Equity securities, at fair value (cost: | 65,056 | 65,890 | ||||||
| Limited partnership investments | 17,171 | 17,690 | ||||||
| Real estate investments | 103,429 | 103,746 | ||||||
| Other investments | 5,000 | 5,000 | ||||||
| Total investments | 1,105,502 | 789,655 | ||||||
| Cash and cash equivalents | 1,014,049 | 1,210,126 | ||||||
| Restricted cash | 3,757 | 3,748 | ||||||
| Income taxes receivable | 1,521 | 1,332 | ||||||
| Deferred income tax assets, net | 21 | 2,237 | ||||||
| Premiums receivable, net (allowance: | 60,399 | 57,494 | ||||||
| Prepaid reinsurance premiums | 20,948 | 50,127 | ||||||
| Reinsurance recoverable, net of allowance for credit losses: | ||||||||
| Paid losses and loss adjustment expenses (allowance: | 23,093 | 27,855 | ||||||
| Unpaid losses and loss adjustment expenses (allowance: | 246,759 | 262,041 | ||||||
| Deferred policy acquisition costs | 59,700 | 59,722 | ||||||
| Property and equipment, net | 28,243 | 28,939 | ||||||
| Intangible assets, net | 2,234 | 2,683 | ||||||
| Funds withheld for assumed business | 5,299 | 5,254 | ||||||
| Other assets | 39,556 | 27,715 | ||||||
| Total assets | $ | 2,611,081 | $ | 2,528,928 | ||||
| Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||||
| Losses and loss adjustment expenses | $ | 566,839 | $ | 576,495 | ||||
| Unearned premiums | 597,814 | 643,328 | ||||||
| Advance premiums | 48,005 | 19,302 | ||||||
| Ceded reinsurance premiums payable | 26,475 | 27,591 | ||||||
| Assumed premiums payable | 3,056 | 1,744 | ||||||
| Income taxes payable | 42,837 | 12,782 | ||||||
| Deferred income tax liabilities, net | — | 3,814 | ||||||
| Revolving credit facility | 36,000 | 36,000 | ||||||
| Long-term debt | 31,672 | 31,877 | ||||||
| Accrued expenses and other liabilities | 80,683 | 61,351 | ||||||
| Total liabilities | 1,433,381 | 1,414,284 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interests | 4,211 | 3,359 | ||||||
| Equity: | ||||||||
| Common stock, (no par value, 40,000,000 shares authorized, 12,900,905 and 12,992,147 shares issued and outstanding, respectively) | — | — | ||||||
| Additional paid-in capital | 413,838 | 428,109 | ||||||
| Retained earnings | 679,721 | 611,509 | ||||||
| Accumulated other comprehensive (loss) income | (4,538 | ) | 1,459 | |||||
| Total stockholders' equity | 1,089,021 | 1,041,077 | ||||||
| Noncontrolling interests | 84,468 | 70,208 | ||||||
| Total equity | 1,173,489 | 1,111,285 | ||||||
| Total liabilities, redeemable noncontrolling interests and equity | $ | 2,611,081 | $ | 2,528,928 | ||||
Consolidated Statements of Income (Unaudited) (In thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Revenue | ||||||||
| Gross premiums earned | $ | 326,206 | $ | 300,383 | ||||
| Premiums ceded | (104,055 | ) | (99,635 | ) | ||||
| Net premiums earned | 222,151 | 200,748 | ||||||
| Net investment income | 17,301 | 13,751 | ||||||
| Net realized investment gains | 534 | 1,167 | ||||||
| Net unrealized investment losses | (1,698 | ) | (1,906 | ) | ||||
| Policy fee income | 1,576 | 2,229 | ||||||
| Other | 3,018 | 444 | ||||||
| Total revenue | 242,882 | 216,433 | ||||||
| Expenses | ||||||||
| Losses and loss adjustment expenses | 65,600 | 59,291 | ||||||
| Policy acquisition and other underwriting expenses | 31,770 | 27,287 | ||||||
| General and administrative personnel expenses | 22,353 | 20,483 | ||||||
| Interest expense | 923 | 3,384 | ||||||
| Other operating expenses | 6,852 | 5,649 | ||||||
| Total expenses | 127,498 | 116,094 | ||||||
| Income before income taxes | 115,384 | 100,339 | ||||||
| Income tax expense | 30,341 | 26,109 | ||||||
| Net income | $ | 85,043 | $ | 74,230 | ||||
| Net income attributable to noncontrolling interests | (11,636 | ) | (4,546 | ) | ||||
| Net income after noncontrolling interests | $ | 73,407 | $ | 69,684 | ||||
| Basic earnings per share | $ | 5.62 | $ | 6.47 | ||||
| Diluted earnings per share | $ | 5.45 | $ | 5.35 | ||||
| Dividends per share | $ | 0.40 | $ | 0.40 | ||||
(Unaudited)
(In thousands, except per share amount)
The computations of basic and diluted earnings per share for the periods presented were as follows:
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||
| (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||
| Net income | $ | 85,043 | $ | 74,230 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (11,636 | ) | (4,546 | ) | |||||||||||||||||||
| Net income after noncontrolling interests | 73,407 | 69,684 | |||||||||||||||||||||
| Less: Income attributable to participating securities | (3,255 | ) | (3,103 | ) | |||||||||||||||||||
| Basic Earnings Per Share: | |||||||||||||||||||||||
| Income attributable to common stockholders | 70,152 | 12,490 | $ | 5.62 | 66,581 | 10,286 | $ | 6.47 | |||||||||||||||
| Effect of | |||||||||||||||||||||||
| Stock options | — | 398 | — | 350 | |||||||||||||||||||
| Convertible senior notes | — | — | 1,873 | 2,142 | |||||||||||||||||||
| Warrants | — | 8 | — | 7 | |||||||||||||||||||
| Net impact from reallocation of undistributed earnings to participating securities | 78 | — | — | — | |||||||||||||||||||
| Diluted Earnings Per Share: | |||||||||||||||||||||||
| Income attributable to common stockholders | $ | 70,230 | 12,896 | $ | 5.45 | $ | 68,454 | 12,785 | $ | 5.35 | |||||||||||||
